Despite a recent survey by tescocompare.com, which found that insurance premiums on a 'green' car can be £50 higher than average, a spokesperson for the British Insurance Brokers' Association has claimed that there can actually be insurance benefits for those who go green.

Graeme Trudgill believes that those who switch to more environmentally-friendly vehicles can save money on insurance as well as tax.

"People are looking at what the most affordable methods of transport are. Road tax is priced according to your emissions as well, so there are financial benefits to driving greener vehicles, both in tax and insurance," Mr Trudgill said.

He went on to add that car insurance is about risk-based pricing and that factors such as the age and experience of the driver, the age of the car and the value of it are all taken into consideration by cover providers.

The recent report by Tesco's comparison site revealed that 21 million people in Britain would change to a greener vehicle if there were incentives to do so.

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